CURRENCY MARKET WRAP
As of Wed Oct 23rd, Singapore Time zone UTC+8
U.S. Dollar Index, +0.17%, 97.50
USDJPY, -0.12%, $108.49
EURUSD, -0.18%, $1.1128
GBPUSD, -0.59%, $1.2884
USDCAD, +0.06%, $1.3095
AUDUSD, -0.11%, $0.6860
NZDUSD, +0.03%, $0.6411
U.S. existing home sales decreased 2.2% month-over-month in September to a seasonally-adjusted annual rate of 5.38 million (consensus 5.52 mln) from a revised 5.50 million (from 5.49 million) in August. Total sales were 3.9% higher than the same period a year ago.
Brexit looked set to be delayed until next year at the earliest after the prime minister suffered another major Commons defeat. The European council’s president, Donald Tusk, said he would recommend the extension be signed off and it was suggested that 31 January 2020 would be set as the new deadline, though it would be superseded if there was an earlier ratification of Brexit by MPs.
Boris Johnson paused his attempt to get his deal through parliament after MPs refused to allow him to fast-track it. Despite MPs having decided to pass the legislation that would implement the deal to the next parliamentary stage, Johnson took it off the agenda because they refused to agree to accede to his demand for a three-day timetable. The news caused a knee-jerk reaction to the downside for equities, as it makes an extension request more likely and increases the uncertainty in the market.
Canadian election results show Prime Minister Justin Trudeau’s Liberal Party will return to power, but as a minority government after Monday’s general election. “From coast to coast to coast, tonight Canadians rejected division and negativity. They rejected cuts and austerity. They voted in favor of a progressive agenda and strong action on climate change,” he said. “We will make life more affordable, we will continue to fight climate change, we will get guns off our streets.”
U.S. Treasuries finished the session mixed. The 2-yr yield increased two basis points to 1.61%, and the 10-yr yield declined two basis points to 1.77%. The U.S. Dollar Index increased 0.17% to 97.50.
STOCK MARKET WRAP
S&P500, -0.36%, 2,995.99
Nasdaq, -0.72%, 8,104.30
Nikkei Futures, -0.02%, 22,680.0
S&P 500 lost 0.36% on Tuesday in a news-heavy session. Company-specific news contributed to outsized stock moves, but overall gains in broader market had been nominal until a hiccup on the Brexit front dragged the major indices into negative territory. The benchmark index closed at session lows below the 3000 level.
The information technology sector (-1.4%) succumbed to broad-based selling and was today’s laggard. The communication services sector (-0.9%) followed suit amid sizable losses in Facebook (FB 182.34, -7.42, -3.9%) and Netflix (NFLX 266.69, -11.36, -4.1%), while the energy sector (+1.3%) was today’s leader amid a bounce in oil prices ($54.38, +$1.09, +2.4%).
Facebook was hit by news that it is now being probed by 47 attorney generals for possible antitrust violations. Netflix fell after Verizon (VZ 60.77, +0.02, unch) partnered with Walt Disney (DIS 132.40, +2.14, +1.6%) to provide its customers with free access to Disney+ for one year.
Biogen (BIIB 281.87, +58.36, +26.1%) was a notable story stock on Tuesday. Shares surged 26% after the company surprised investors by saying it will seek FDA approval for its Alzheimer’s drug in 2020 after it had renounced the treatment in March. Biogen also beat top and bottom-line estimates.